I am always intrigued as to the definitions of when a new bear market begins. Most pundits claim that when a market falls 20% then it is in the grip of the bear. I am not so sure. For example if you held a stock at $10 and it went to $8 would you consider that stock in a bear market or just accept the fact that it had gone down 20%. My thinking tends to guide me towards the latter position.
Having lived through the bear markets post the 1987 crash, the Asian economic crisis, the Tech wreck and the GFC simply going down 20% doesn’t really cut it for me.
What also intrigued me about the recent moves in the Nikkei was the somewhat odd thinking that a market that gained over 50% in just over 4 months was not going to end in tears.